Title 8: Banking and Insurance
Chapter 131: LICENSING REQUIREMENTS
Sub-Chapter 002: Regulation Of Managing General Agents, Reinsurance Intermediaries, And Producer Controlled Insurers
8 V.S.A. § 4817. Licensure
§ 4817. Licensure
(a) No person shall act in the capacity of a managing general agent with respect to risks located in this State for an insurer licensed in this State unless such person is licensed as a managing general agent in this State and is a licensed producer in this State as defined in this subchapter.
(b) No person shall act in the capacity of a managing general agent representing an insurer domiciled in this State with respect to risks located outside this State unless such person is a licensed producer in this State (such license may be a nonresident license) pursuant to this chapter.
(c) The Commissioner may require a bond in an amount acceptable to him or her for the protection of the insurer or reinsurer.
(d) The Commissioner may require a managing general agent or reinsurance intermediary to maintain an errors and omissions policy.
(e) No person shall act as a reinsurance intermediary-broker in this State unless such reinsurance intermediary-broker is licensed as a resident or nonresident reinsurance intermediary and as an insurance broker in this State as defined in this chapter.
(f) No person shall act as a reinsurance intermediary-manager:
(1) for a reinsurer domiciled in this State, unless such reinsurance intermediary-manager is a producer in this State;
(2) in this State, if the reinsurance intermediary-manager maintains an office either directly or as a member or employee of a firm or association, or an officer, director, or employee of a corporation in this State, unless such reinsurance intermediary-manager is a producer in this State; and
(3) in another state for a nondomestic insurer on any Vermont business, unless such reinsurance intermediary-manager is a licensed producer in this State or another state having a law substantially similar to this law or such person is licensed in this State as a nonresident reinsurance intermediary.
(g) The Commissioner shall issue a reinsurance intermediary license to any person who has complied with the requirements of this subchapter unless the applicant, anyone named on the application, or any member, principal, officer, or director of the applicant, is not trustworthy, or that any controlling person of such applicant is not trustworthy to act as a reinsurance intermediary, or that any of the foregoing persons has given cause for revocation or suspension of such license, or has failed to comply with any prerequisite for the issuance of such license.
(h) If the applicant for a reinsurance intermediary license is a nonresident, such applicant, as a condition precedent to receiving or holding a license, shall designate the Secretary of State as agent for service of process in the manner, and with the same legal effect, provided for by section 3370 of this title for designation of service of process upon unauthorized insurers; and also shall furnish the Secretary of State with the name and address of a resident of this State upon whom notices or orders of the Commissioner or process affecting such nonresident reinsurance intermediary may be served. Such licensee shall promptly notify the Secretary of State in writing of every change in its designated agent for service of process, and such change shall not become effective until acknowledged by the Secretary of State.
(i) Licensed attorneys at law of this State when acting in their professional capacity as such shall be exempt from this section. (Added 1991, No. 249 (Adj. Sess.), § 18, eff. Jan. 1, 1993.)